Graphic Packaging International, Inc., a subsidiary of Graphic Packaging Holding Company  announced today that it plans to streamline its Label business in the United States, and close the label manufacturing facility, located at 1501 Indiana Avenue in St. Charles, a suburb of Chicago, Illinois, early in 2009.

The St. Charles label facility provides "cut and stack" paper labels to the food and healthcare industries. Label production will continue through year-end to fulfill customer orders and support the peak demand in the third and fourth quarters. The Company plans to transition business from the St. Charles site during the first quarter of 2009. The Company is providing appropriate notification and assistance to the approximately 100 hourly and salaried employees who will be affected by this closing.

"This is another strong step under our integration plan to optimize our manufacturing footprint and achieve the announced operating synergies of $90 million by 2010," said David W. Scheible, president and chief executive officer of Graphic Packaging International, Inc. "We believe this decision strengthens our ability to support growing regional markets from our most efficiently run label facilities, and will continue our aggressive earnings improvement in spite of the challenging operating environment."

Forward-looking Statements

Any statements of the Company's expectations in this press release constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements, which include statements regarding facility closures, transition of business to other locations and our ability to achieve $90 million of annualized synergies by 2010, are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from the Company's present expectations. These risks and uncertainties include, but are not limited to, the Company's substantial amount of debt, inflation of and volatility in raw material and energy costs, continuing pressure for lower cost products, the Company's ability to implement its business strategies, including productivity initiatives and cost reduction plans, currency movements and other risks of conducting business internationally, and the impact of regulatory and litigation matters. Undue reliance should not be placed on such forward-looking statements, as such statements speak only as of the date on which they are made and the Company undertakes no obligation to update such statements. Additional information regarding these and other risks is contained in the Company's periodic filings with the SEC.

About Graphic Packaging International, Inc.

Graphic Packaging International, Inc., a subsidiary of Graphic Packaging Holding headquartered in Marietta, Georgia, is a leading provider of paperboard packaging solutions for a wide variety of products to food, beverage and other consumer products companies. The company is one of the largest producers of folding cartons and holds a leading market position in coated-recycled boxboard and specialty bag packaging. The company's customers include some of the most widely recognized companies in the world. Additional information about Graphic Packaging, its business and its products is available on the company's web site at www.graphicpkg.com